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AI, global talent competition reshape Nigeria’s startup ecosystem

Nigeria’s Startup Ecosystem

…Experts urge tech firms to invest in skills, infrastructure as France backs startups

Nigeria’s technology ecosystem must deepen investment in talent development, strengthen collaboration between the public and private sectors and embrace artificial intelligence (AI) to remain competitive in the rapidly changing global digital economy.

Industry experts who spoke at the French Tech Summit in Lagos said the growing adoption of AI was changing how technology companies recruit, develop and retain talent, while creating new opportunities for Nigerian startups to expand into international markets.

They, however, warned that local technology companies must adapt to the changing demands of the industry by strengthening their talent pipelines, improving engineering capabilities and developing business models that can compete beyond the domestic market.

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The summit, organised by the Franco-Nigerian Chamber of Commerce and Industry (FNCCI) in collaboration with French Tech Lagos, brought together technology entrepreneurs, investors and industry stakeholders to examine the resilience of Nigeria’s startup ecosystem and opportunities for French-Nigerian cooperation.

Speaking at the event, Vice President of Engineering at Qore, Bayo Puddicombe, expressed concern that the increasing use of AI-assisted development tools could weaken fundamental engineering skills among technology professionals.

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He noted that some engineers were becoming increasingly dependent on specialised teams for basic technical operations, including navigating Linux environments, executing Bash commands and investigating server responses.

According to him, engineers must not lose their understanding of the fundamentals of software development as AI increasingly takes over routine technical tasks.

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He said companies, particularly those operating in highly regulated sectors such as banking and aviation, would need to balance innovation with appropriate regulatory standards.

Puddicombe, however, encouraged businesses to explore the integration of AI into conventional technology systems, particularly for applications such as early detection and operational efficiency.

He also called for deliberate investment in talent development, arguing that technology companies should build a sufficiently broad talent pipeline to accommodate inevitable attrition and changing market demands.

Senior Vice President, Nigeria, at Wakanow, Gbolahan Salami, said the growing international demand for African technology professionals was changing the economics of talent retention for local companies.

He observed that Nigerian technology firms were increasingly competing with international employers for skilled professionals, making local salary benchmarks insufficient in retaining some employees.

According to him, companies must now consider international compensation standards, particularly as some engineers relocate abroad while maintaining professional relationships with their former employers.

Salami explained that such arrangements sometimes require companies to engage relocated employees as contractors rather than retain them under existing employment structures, given differences in salary structures, employment regulations and operational jurisdictions.

He, however, described the development as an opportunity for Africa, noting that the continent’s youthful population could provide a growing pool of technology professionals to meet both local and international demand.

He advised companies unable to match international salary levels to invest further down the talent pipeline through structured training, internships and other capacity-building initiatives.

Salami also highlighted the importance of making internship programmes more meaningful, arguing that exposing young people to real workplace environments could stimulate their interest in technology and help them understand how products and services are developed.

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He said artificial intelligence had also made access to technical knowledge and learning resources significantly easier, allowing individuals and organisations to design training programmes around specific skills requirements.

Providing an investor’s perspective, Principal at Partech Africa, Tito Cookey-Gam, said AI was changing the relationship between productivity, workforce requirements and business growth.

He argued that the debate should move beyond whether AI would take people’s jobs to whether employees and businesses were creating sufficient value to remain relevant.

According to him, workers and companies must continually improve the value they offer as AI increases productivity and reduces the time required to complete certain tasks.

Cookey-Gam said capital efficiency remained an important consideration for investors, particularly as startups explored opportunities to build globally competitive businesses from African markets.

He noted that AI was enabling founders and business executives to solve technical problems themselves, reducing their dependence on lengthy development processes and allowing them to return to hands-on innovation.

He cited the experience of a startup founder who had previously relied on engineering teams to develop solutions but was now able to write code and build products independently using AI tools.

The development, he said, could encourage more professionals to return to entrepreneurship, while also creating opportunities for venture capital investors to become more involved in business operations.

Strategic Client Partner, West Africa, at Andela, Cheryl Omini, said the continent must take advantage of the growing demand for digital skills by expanding access to technology education and professional training.

She disclosed that research conducted by the organisation indicated that about 230 million digital skills opportunities would be available in Africa by 2030, raising questions about whether the continent had the necessary talent to take advantage of them.

Omini said Andela had been working with educational institutions and corporate organisations to expand access to AI training and technology education.

She cited the organisation’s recent partnership with Miva University, where students participated in a practical AI development exercise, with outstanding participants receiving cash rewards and scholarships.

She said the initiative formed part of efforts to ensure that university students interested in technology could access relevant training without facing prohibitive costs.

Omini urged more organisations to invest in developing young professionals, adding that science, technology, engineering and mathematics education remained essential to building a competitive workforce.

Also speaking, Co-founder and Director of TechQuest, Charles Emembolu, said Nigeria and other African countries had significant opportunities to develop globally competitive technology businesses because of their large and youthful populations.

He, however, called for stronger collaboration among private sector operators, governments and other ecosystem stakeholders to translate the continent’s demographic advantage into sustainable economic growth.

Emembolu argued that governments needed to provide early-stage funding and other forms of support that might not necessarily be driven by immediate commercial returns.

He said greater public sector participation in funding technology innovation could complement international development financing and encourage the growth of local startups.

Earlier, the Consul-General of France in Lagos, Laurent Favier, reaffirmed France’s commitment to supporting Nigeria’s digital economy through investments in skills development, access to finance, digital infrastructure and business partnerships.

In his welcome remarks, Favier said Nigeria had established itself as one of Africa’s leading technology hubs, noting that six of the continent’s 10 unicorns operated across sectors including financial technology, talent technology and mobility.

He said the challenge was to ensure that the country’s entrepreneurial potential translated into sustainable business growth through stronger institutional support and international partnerships.

According to him, resilience in the startup ecosystem could not be achieved by entrepreneurs alone but required investment in human capital, reliable infrastructure, access to finance and collaboration among stakeholders.

He disclosed that the French Development Agency (AFD), through the i-DICE programme supporting digital and creative enterprises in Nigeria, was providing a sovereign loan of up to €100 million to the Federal Government, with French financing dedicated to the programme’s skills-development component.

Favier also highlighted the role of Proparco, France’s development finance institution for the private sector, in supporting Nigerian businesses through investment funds, including Ventures Platform, and direct investments in companies such as Daystar Power, Rensource and Agriarche.

On digital infrastructure, he said French companies were contributing to efforts to expand Nigeria’s connectivity and strengthen the country’s technology ecosystem.

He cited the launch of CANAL+ Telecom’s fibre-optic services in Ibadan earlier in the year, with approximately 5,000 customers connected, as an example of French participation in expanding broadband access.

He also identified opportunities for cooperation in data centre infrastructure, particularly through the expertise of companies such as Schneider Electric in developing sustainable and energy-efficient facilities.

The Consul-General further announced the official launch of the Africa Forward Community in Nigeria, describing it as a concrete outcome of the renewed Africa-France partnership agenda.

The initiative, hosted on Bpifrance’s EuroQuity matchmaking platform, is designed to improve access to support programmes offered by French and African institutions while connecting entrepreneurs, investors and other stakeholders across the two ecosystems.

Favier said the initiative would help businesses identify relevant opportunities, establish partnerships and expand their operations across international markets.

He also congratulated French Tech Lagos on the renewal of its French Tech label for a second term, noting that the community brought together more than 300 French and Nigerian companies and stakeholders.

He said France remained committed to building long-term relationships with Nigerian businesses and institutions to support innovation and strengthen the country’s digital economy.

The summit’s discussions highlighted the growing importance of artificial intelligence, talent development and cross-border investment in shaping the next phase of Nigeria’s technology industry.

They also underscored the need for local technology companies to strengthen their engineering foundations while taking advantage of emerging technologies to compete in an increasingly interconnected global market.

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